US dollar implodes as stocks fall | Forex Factory

US dollar implodes as stocks fall | Forex Factory

US dollar implodes as stocks fall

From forexlive.com

The stock market is slipping but a huge stop just hit in USD/JPY below 99.00, sending it all the way to 98.39. There is no fundamental news behind the drop. To me it looks like huge buy orders went through on the technical breakout in USD/JPY and they had stops at 99.00. The tumble in the stock market has traders on edge as well with the S&P 500 now down 14 points to 1756. Did the 90% jump in twitter stock at the open send a message that stocks are in the euphoria phase of the rally?

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Nov 7, 2013 12:00pm

Quoting Pip Anon

Disliked

Why is it I can do that but others can't? Because they focus on all the extra nonsense outside markets.

Ignored

While I can only speak for myself, I think it's a lot more complicated than that. For me, the thing that I struggle with is the discipline: holding on to trades that you know you should hold on to, and getting rid of the ones that you know you shouldn't.

And that is ultimately a matter of your personality, patience, and level of risk tolerance, to name a few -- things that have absolutely nothing to do with the "nonsense" you speak of.

I know this is a difficult concept to grasp for many traders including myself. I dedicate 100% of my focus to the markets like you, but it doesn't matter if the discipline isn't there.

Nov 7, 2013 6:53pm

I have been watching USD/JPY at around 97ish and i knew 99 was the ultimate target to complete that Bearish Butterfly Pattern....That's why this morning i closed out the rest of my positions.....It doesn't matter if there's news or not, all the information you need is inside the chart.

News simply push the price action faster to the initial direction, and I am guessing one of the reasons why the pair went down so fast is because there were so many sell limit orders at that area.....

Some people like to play it safe, but i tend to play the Aggressive C-Leg instead of the D-completion.

Nov 7, 2013 10:54am

Quoting frx_trader

Disliked

Market is confusing in this time of uncertainty. GBP hits high and LOW like a headless chicken. Where is the charted water?

Ignored

What do u mean? It is nice triangle on daily/weekly on usdjpy...who would not short it?

Nov 7, 2013 11:00am

Quoting frx_trader

Disliked

Everybody is an economist. What does it have to with the market? Market is blind, it doesn't care whether what, where, and who.

Ignored

Not really. If you cannot read the markets, you shouldn't be in the markets. I get thing wrong time to time, but I don't focus on anything other than the markets and I do quite well.

See what you are missing is that it doesn't matter if the market is blind. It is the great equalizer in the sense than anybody can join, but the market not having any eyes does not negate the fact that you do.

I posted a few days ago, eurodollar to go thru 1.34 and onto 1.33 and dollar to 81.33. And it was balls accurate

Why is it I can do that but others can't? Because they focus on all the extra nonsense outside markets.

Nov 7, 2013 12:42pm

Quoting smash1820

Disliked

While I can only speak for myself, I think it's a lot more complicated than that. For me, the thing that I struggle with is the discipline: holding on to trades that you know you should hold on to, and getting rid of the ones that you know you shouldn't.

And that is ultimately a matter of your personality, patience, and level of risk tolerance, to name a few -- things that have absolutely nothing to do with the "nonsense" you speak of.

I know this is a difficult concept to grasp for many traders including myself. I dedicate 100% of my focus...

Ignored

Of course it is difficult or everyone would be rich. And discipline is far different than being able to read the markets. You can be a great analyst and a poor trader due to interpersonal issues. When I first started, I had a horrendous impulsive issue I had to deal with. But like reading the markets, those interpersonal aspects also need training and refining to get where they need to be.

I agree that without discipline being able to read the markets will be hard as a trader, but discipline has very little to do with it if you are an analyst.

The reason why discipline is such an issue with many traders is because it's not sexy to work on personal demons. It's hard work. It's way easier to throw up some techs and say such and such will happen.

Take AUDUSD for instance. Many traders were just digging for a long bounce sub-.93. There would be squeezes and many on FF would jump on saying it was heading back to parity. 16 months ago that could have been me, but I held short to .89. And I REFUSED to long until .93 held, and when it did it rolled to .975.

I have learned to be patient through the noise and "nonsense." Each trader has their own issues they need to work out, but the main point is that the market is readable or people wouldn't be doing this.

A quote from Eric Thomas that speaks wonders "when you want to succeed as bad as you want to breathe then you'll be successful."

If you want it bad enough you'll make it happen. Good luck!

Nov 7, 2013 1:09pm

Quoting Max Thrax

Disliked

They can't draw trendlines on daily charts? I've been waiting on that trendline break on eur/usd for a week, the only trade I've made in weeks.

Ignored

The trend was broken as it fell thru 1.37 while momentum began near 1.38 with a failure to close above 1.3841. That's what the daily told me

Nov 7, 2013 10:51am

Quoting Pip Anon

Disliked

What's uncertain about it? Lol. You are only uncertain if your an economist.

Ignored

Everybody is an economist. What does it have to with the market? Market is blind, it doesn't care whether what, where, and who.

Nov 7, 2013 11:18am

Quoting Pip Anon

Disliked

Not really. If you cannot read the markets, you shouldn't be in the markets. I get thing wrong time to time, but I don't focus on anything other than the markets and I do quite well.

Ignored

Great for you. I have been being uncertain abt the market, so I am mostly sidelined for the day. I knew USD was getting stronger. But the most important news, ECB, didn't come out. So, I preferred to wait and see.

There are too much news lately, and I cannot decide which news to trade. Once the dust is settled, you bet I will be in it.

Nov 7, 2013 11:41am

ForexLive, what the frick are you talking about? The dollar exploded this morning. Have you even looked at a DX chart? USD/JPY soared this morning on the ECB rate cut then retraced back down - that's not a technical breakout. Further, TWTR started to trade at 10:45 but the broad market sank just after the open, a full hour before the IPO. How can you make such a ridiculous post? Not a single thing you wrote is factually accurate.

Nov 7, 2013 12:03pm

@Exodus,
GDP could have had some effect on the dollar this morning, but the ECB cutting rates was huge by comparison. The entire Eurozone as a whole is the world's largest economy, so the ripple effects from their rate change is going to be at least as significant as a US rate change.

Nov 7, 2013 3:51pm

It seems obvious that big interests were more interested in rebalancing before non-farm than just dumping USD. EJ and AJ are both down around twice their daily ranges, and GJ which seems to be the strongest major against the Yen is down well over ADR. Looks like the author forgot to look at the related pairs. Even CHF/JPY is down by about twice ADR. Maybe there is some real concern for an unbelievable bad non-farm print tomorrow. Those who are long U anything should be looking to exit before the event.

Nov 7, 2013 10:28am

Yeah lol already bought in UJ and GJ

Nov 7, 2013 10:32am

...just wish my AJ long entry order had been a few points lower.

Been watching this for a few days now, stocks creeping down to free up cash for the Twatter IPO, in my opinion.

Nov 7, 2013 10:35am

Quoting Pip Anon

Disliked

Notice how the title changed from U/J to US dollar

Ignored

...on the Smurf keyboard 'S' is next to 'J' :nerd:

Nov 7, 2013 10:41am

Dang it! I had my fingers on the short key, I just never pressed it in time ;(

Nov 7, 2013 11:25am

Quoting frx_trader

Disliked

...But the most important news, ECB, didn't come out....

Ignored

...where have you been?

Nov 7, 2013 11:45am

@Rob Mondave

....so you don't think it was the US GDP figures?

Nov 7, 2013 10:26am

It is nice triangle on daily/weekly on usdjpy...who would not short it?

Nov 7, 2013 10:40am

Quoting finix

Disliked

it would be a nice daily pin bar to trade..ljust waiting

Ignored

Maybe even 2 day pin bar...

Nov 7, 2013 10:30am

Notice how the title changed from U/J to US dollar

Nov 7, 2013 10:48am

Quoting Exodus

Disliked

...on the Smurf keyboard 'S' is next to 'J' :nerd:

Ignored

But we don't denote the US with a "/" in the middle: U/S? Lol

Nov 7, 2013 10:48am

Quoting frx_trader

Disliked

Market is confusing in this time of uncertainty. Where is the charted water?

Ignored

What's uncertain about it? Lol. You are only uncertain if your an economist.

Nov 7, 2013 10:20am

Said the mr obvious

Nov 7, 2013 10:46am

Market is confusing in this time of uncertainty. GBP hits high and LOW like a headless chicken. Where is the charted water?

Nov 7, 2013 10:59am

Quoting IndigoPingvi

Disliked

What do u mean? It is nice triangle on daily/weekly on usdjpy...who would not short it?

Ignored

So you are short. Why didn't you tell everybody?

Nov 7, 2013 11:44am

Quoting Exodus

Disliked

...where have you been?

Ignored

ECB caught many off guard. Including you know who on FF. yeah, I mean EU would go to 1.4. That's him. Should I spell it?

Nov 8, 2013 10:11am

beecause ECB its still down to stimulan euro to down

Nov 7, 2013 12:55pm

Seems like the USD/Jpy has seen the most extreme fall when compared to the other majors against the dollar. Anyone with an insight on this?

Nov 7, 2013 10:20am

I knew its uptrend was an empty facade,that's why I sold from 99.32..

Nov 7, 2013 10:37am

it would be a nice daily pin bar to trade..ljust waiting

Nov 7, 2013 11:31am

Hello everyone,
WE got Selling climax (selling panic) action on EUR/USD which resulted with professional money buying wiht large positions and we may end bearish corrective phase at pruce 1.3300 and start with major bullish continuation, be careful with any short-mid term selling.

Best Regards,
Petar

Nov 7, 2013 11:52am

Quoting IndigoPingvi

Disliked

What do u mean? It is nice triangle on daily/weekly on usdjpy...who would not short it?

Ignored

I think a triangle or pennant formation is an indicator of uncertainty as stated above. Not a good market fora technical trader, all moves seem to be driven by fundamentals and news releases, also seems to indicated uncertainty along with the range-y price action over the last few weeks. I've been sidelined for the most part. Dunno about the headline.....dollar looks poised to strengthen.

Nov 7, 2013 12:07pm

Quoting Pip Anon

Disliked

Why is it I can do that but others can't? Because they focus on all the extra nonsense outside markets.

Ignored

They can't draw trendlines on daily charts? I've been waiting on that trendline break on eur/usd for a week, the only trade I've made in weeks.

Nov 7, 2013 10:39am

Just hit the down trendline USD INDEX on the Daily time frame
FX Bunte

Nov 7, 2013 10:20am

breaking would be why not that it happened

Nov 7, 2013 10:21am

what the hell is with this no news any where

Nov 7, 2013 10:22am

good time to buy

Nov 7, 2013 10:25am

Really YOU WANT TO BUY

Nov 7, 2013 10:26am

Quoting GhulamSabir

Disliked

Really YOU WANT TO BUY

Ignored

Yes. 6 lots in

Nov 7, 2013 10:27am

I will wait til usa close then jump in to buy ....

Nov 7, 2013 10:29am

Many got busted with this move .... I was short at 90.06 but just close my call few seconds befor this down =fall ohhhhhhh god

Nov 7, 2013 10:36am

what a great day for trade.
it's time to long or what?

Trader#30B5

Nov 7, 2013 12:07pm

simple macroenomics, lower euro interest rate means dollar strengthens and the jpy was nicknamed the super dollar by me around five years back as it (USDJPY) has a positive correlation to S&P whereas USD has a negative correlaton to S&P. where's that loadedguy, huh? he gone underwater or what? shame, send him an aqualung my friend, so he can prove me wrong with chaos theory using bollinger bands (with a few standard deviations)

P.S. watch out, the IT algo programmers, are rewriting their algos like mad right now, but no fear the usual 5 min stoploss hunt will be retained for NFP, the brokers need it.

Nov 7, 2013 2:58pm

It seems I have got the answer for today's move; the market has prepared itself for a bad NFP numbers which might now result in a bearish movement, in case of +ve numbers, it will blast...

Trader#F697

Nov 7, 2013 6:33pm

Quoting Rob Mondave

Disliked

ForexLive, what the frick are you talking about? The dollar exploded this morning. Have you even looked at a DX chart? USD/JPY soared this morning on the ECB rate cut then retraced back down - that's not a technical breakout. Further, TWTR started to trade at 10:45 but the broad market sank just after the open, a full hour before the IPO. How can you make such a ridiculous post? Not a single thing you wrote is factually accurate.

Ignored

YEA! What he said! Implode? This article reinforces the fact that there are very few actual 'experts' on anything.

Trader#A537

Nov 7, 2013 10:26am

i'll tell you what happened... i just unloaded a bunch of dollars... i'm moving to japan so buying yen.

Trader#C2B8

Nov 8, 2013 6:05am

The Forexlive article is rubbish, clearly the dollar did not implode. My guess is the author is short USD and trying to talk it down.

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Nov 7, 2013 10:17am
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